Fri Feb 06 11:19:55 UTC 2026: # Kerala’s Budget Tourism Soars While Caravan Tourism Struggles
The Story:
A recent report highlights the contrasting fortunes of two distinct tourism initiatives launched in 2021 by the Kerala government. While the Kerala State Road Transport Corporation’s (KSRTC) budget tourism has proven to be a resounding success, caravan tourism, designed for affluent tourists, is facing significant challenges. Budget tourism has generated substantial revenue and widespread participation, whereas caravan tourism struggles with low adoption and operational hurdles.
Key Points:
- KSRTC’s budget tourism has generated a cumulative revenue of ₹106 crore until January 2026, with ₹42 crore in 2025 alone, including a profit of approximately ₹17 crore.
- Pilgrim tourism is the most popular service within budget tourism, earning ₹5.71 crore in 2025.
- Caravan tourism has seen minimal traction, with only 13 caravans operating despite government subsidies of up to 15% or ₹7.5 lakh.
- Only two caravan parks are currently operational in Kerala.
- KSRTC emphasizes the affordability, safety, and comprehensive support provided to travelers as key factors in the success of budget tourism.
Key Takeaways:
- Affordability and accessibility are crucial drivers for tourism success in Kerala.
- Government subsidies alone are insufficient to guarantee the success of luxury tourism initiatives without sufficient market demand.
- Catered tourism is more beneficial to the region due to its low price point and higher accessibility
- The success of budget tourism is attributed to KSRTC’s ability to curate safe, engaging, and informative trips catering to a diverse range of travelers.
- The state should focus on improving the quality and accessibility of its budget tourism options.
First Piper 